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Benefit or Damage? The Productivity Effects of FDI in Chinese Food Industry

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  • Jin, Shaosheng
  • Guo, Haiyue
  • Delgado, Michael
  • Wang, H.

Abstract

This paper systematically investigated the impact of foreign direct investment (FDI) on Chinese food firms’ total factor productivity (TFP) by using the firm-level census data between 1998 and 2007 (174,539 sample food firms). We tested for “own-plant” effects, intra-industry effects, regional effects and vertical effects. The results show that food firms’ foreign ownership has weakly positive or no impact on the productivity of invested firms. At the industry level, FDI generates adverse influences on domestic firms productivity in some sub food sectors. Further, mixed regional effects are observed in different sub food sectors and across investment with different origins. Finally, both positive backward and forward spillovers generated by FDI originating outside Hong Kong, Macaw and Taiwan (HMT) are observed, while HMT investment has negative vertical spillovers.

Suggested Citation

  • Jin, Shaosheng & Guo, Haiyue & Delgado, Michael & Wang, H., 2015. "Benefit or Damage? The Productivity Effects of FDI in Chinese Food Industry," 2015 Conference, August 9-14, 2015, Milan, Italy 211813, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:211813
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    References listed on IDEAS

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    More about this item

    Keywords

    food industry; foreign direct investment (FDI); China; productivity; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Q13 Q17 Q18;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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